Tuesday, May 25, 2010

What's the best company to open an account with for a first time stock trader?

I'm going to start small so I can't pay large fees. I'm going to do this online only. I don't want to meet with a financial advisor.
What's the best company to open an account with for a first time stock trader?
I would start with either Ameritrade or Etrade. Since it seems like you are a novice investor, I wouldn't worry about getting into the the more advanced programs out there just yet. I like ameritrade becomes it is very simple and easy to use, and the commision terms are straight and simple. $9.99 a trade. You also will get 90 days of free trading if you transfer $2,000.00 or more. Good luck!
Reply:e-trade!
Reply:You may also want to consider joining our stock picking group to share experiences/strategies with other stock traders:





http://finance.groups.yahoo.com/group/Tr...





We do polls on online brokers every once in a while too.
Reply:etrade or ameritrade or any of the other major companies will give you roughly the same service.





However, small stock trades for beginners are a poor investment strategy. You will most likely lose money. Beginners trading in small quantities inevitably hold a stock too long, or buy at the wrong time.





Consider using mutual funds to build your invest ment portfolio first - they are either managed by computer systems (indexed funds) or actively managed by a team of experts. Either way, they can diversify your investment and ensure stocks are bought and sold at the right time. An index fund from Vanguard will have very low management costs, so you are less likely to lose money. You can open a ROTH IRA with Vanguard and invest within that, to further increase your tax efficiency.





Trading stocks involves fees every time you trade; you don't pay a fee with a mutual fund.





If you do not have sufficient to start in a mutual fund (the minimum investment at Vanguard is $1000 in their Star fund) then consider buying ETFs through one of the online brokers. This again will spread your risk, and because they move automatically with indexes, will also reduce your risk.
Reply:http://goldenbullpicks.com is perfect for what you want.
Reply:Here's a link to look at:





http://articles.moneycentral.msn.com/Inv...





Considerations:


Would you miss the money if you lost it?





Only play with what you can afford to lose.





The market is a dangerous place for new players and you are best to equip yourself with some knowledge before throwing money at the market.

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